The Road to the SDGs

PURPOSE X IsDB’s new business model has led to changes in its country engagement strategy methodology to adopt an approach centred around GVCs by promoting development through better integration of MCs in the GVCs. X IsDB’s interventions focus on resolving binding constraints hindering the development of the identified GVCs. Infrastructure development takes centre stage as it is the most capital-intensive sector (approximately 70% of funding needs) and has a higher economic multiplier effect. It also blends with other activities to address root causes and unlock the potential of the value chain. METHOD X A CP is an independent investment vehicle established as a joint-venture partnership between IsDB and MCs, with the specific objective to develop bankable projects, including public-private partnership infrastructure projects among others, with financing support from crowded-in private capital. While CPs can be designed as regional institutions covering several countries, at the initial stage of the roll-out of the model, the focus is on setting up single-country vehicles. CPs cover the full project cycle, including: – Conducting feasibility studies – Structuring the concessions – Tendering infrastructure concessions out to the market – Contributing to the project equity and/or debt financing – Supporting the operations and maintenance together with a technical partner – Extending lines of finance as liquidity facility for value-chain players – Delivering emergency social projects. X A CP is rolled out as a standalone investment vehicle (off the IsDB balance sheet) created under a special legal regime separate from the applicable corporate and commercial law of the jurisdiction(s) where it operates. It aims to benefit from privileges and immunities similar to those of IsDB. X Each CP employs internationally accepted, transparent procurement standards, whereby market principles are adhered to, in order to achieve the best value for money through a competitive tendering process with a focus on total lifecycle costs. X The initial equity of the CP, which is contributed by the MC and IsDB, is used Country Platforms: fourth-generation development finance I sDB’s Country Platform employs a cutting-edge fourth-generation development finance approach and constitutes the flagship implementation vehicle for the new MCPS The CP concept has been received with great interest by all MCs and industry experts [ 232 ] SDGs